Global macro overview for 01/06/2016:
Better-than-expected GDP data from Australia boosted the AUD in overnight trade. Global investors expected GDP to decrease slightly from 0.7% q/q (2.9% y/y) to 0.6% q/q (2.8% y/y), but the number revealed a strong increase to the level of 1.1% q/q (3.1% y/y). The main driver for this result was stronger-than-expected first-quarter exports data and an increasing number of building permits. In conclusion, most market participants are backing off from their conviction about another RBA rate cut at the next meeting in June.
Let's now take a look at the AUD/USD technical picture on the the daily time frame. Local resistance at the level of 0.7258 was violated after the data release, but the market is still trading below the 50 and 100 moving averages. The recent move up looks more like a corrective cycle that might even reach the level of 0.7412 before being capped.